Retailers and tech giants are rushing to roll out AI-powered search. Amazon and Walmart are among the retailers that have implemented generative search on their shopping platforms. Tech heavyweights are also moving quickly. Meta is working on its own AI-powered engine, while other players have rolled out search functions, including:

• Google: AI Overviews
• OpenAI: SearchGPT
• Perplexity: Pro Search and a macOS desktop app
• Microsoft: Bing Generative Search

Consumer behavior is already starting to shift. Appetite for generative search is strongest in a retail setting—with 41% of US consumers interested in using search engines that incorporate AI-generated results for online shopping. Only 19% are interested in it for news-related searches, however, per a February 2024 survey by Dynata for Botify. Retailers that have implemented conversational search on their shopping platforms are reporting an increase in mission-driven search queries. 

Organic traffic has taken a hit. Google’s AI Overviews search engine is already having an impact on traffic, according to a study by the Growth Memo. It found that URLs cited in AI Overviews experienced decreased traffic compared with when Overviews hits were not included in search engine results. On average, clicks for URLs included in AI Overviews were down by 8.9% compared with when they appeared as normal search engine result page links.

Predictions

• Smartphone integration will accelerate consumer adoption of generative search. Apple, Google, Samsung, and Huawei are all launching AI-enabled smartphones with conversational search functionality. As more consumers get accustomed to those capabilities on mobile, desktop behaviors will start to shift. 
• Brands and retailers will reassess their search strategies. Not only is Google’s AI Overviews set to disrupt ad performance, SEO, and web traffic, but AI-powered search tools from the likes of Perplexity, OpenAI, and Meta could fundamentally shift search behavior, fragmenting the search landscape.

Read the full report, Generative AI Trends to Watch in 2025.